Summary
This Form 8-K filing from Discovery Communications, Inc. (now part of Warner Bros. Discovery, Inc.) on March 12, 2013, details a significant debt offering by its subsidiary, Discovery Communications, LLC (DCL). DCL is issuing and selling $350 million of 3.250% Senior Notes due 2023 and $850 million of 4.875% Senior Notes due 2043, totaling $1.2 billion in aggregate principal amount. Investors should note that the net proceeds from this offering are expected to be approximately $1.19 billion. These funds are earmarked for general corporate purposes, which may include strategic acquisitions, debt refinancing, working capital needs, capital expenditures, and potentially stock repurchases by the parent company, Discovery Communications, Inc. The offering is being conducted under a previously filed registration statement and is expected to close on March 19, 2013, subject to customary closing conditions.
Key Highlights
- 1Discovery Communications, LLC (DCL) is issuing $350 million in 3.250% Senior Notes due 2023.
- 2DCL is also issuing $850 million in 4.875% Senior Notes due 2043, for a total debt offering of $1.2 billion.
- 3The offering is underwritten by J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Credit Suisse Securities (USA) LLC.
- 4Net proceeds from the offering are estimated to be approximately $1.19 billion.
- 5Proceeds will be used for general corporate purposes, including potential acquisitions, debt repayment, working capital, and capital expenditures.
- 6Discovery Communications, Inc. (the Guarantor) will unconditionally guarantee the notes.
- 7The offering is expected to close on March 19, 2013, subject to standard closing conditions.